Shania Twain – Forever And For Always

Cambodia Production Function Elasticity Across Industries and the degree of intensive

The degree of intensive is calculated as ratio of Capital to Labor. Using data complie from CDC, the project based data(Approved project),  I try to find out the comparison across industry. The result shown that the garment,textile and footwear is quite labor intensive compare to other industry. Foreign Capitl tend to be more intensive than domestic capital. The following table show the ratio. Note that the industry classification in 13 manufacturing industry I made a combination of some industry by trying to make consistent of data availabe between gross value added data from NIS and the project data of CDC. In a correction the real disbursement capital and labor of project should be used because some project migt be unfinised or delayed. however due to the lack of data in Cambodia. The comparison is at least show some meaning.  Labor and Capital are accumulated at each period. 

Year		Industry	K/L	Kd/L	Kf/L
2003	1	Mining	22,834.65	1,172.31	11,645.73
	2	Food	12,322.44	3,378.12	8,449.46
	3	Tobacco	32,786.38	7,429.01	11,093.15
	4	Textiles	2,618.69	224.93	997.17
	5	Wearing Apparel	1,092.87	466.93	2,284.80
	6	Footwear	1,714.98	429.03	1,695.48
	7	Wood Product Manufacturing	14,888.39	1,474.64	3,433.94
	8	Paper and Publishing	7,433.36	3,189.72	9,148.75
	9	Rubber Manufacturing	7,394.27	5,008.53	14,273.11
	10	Non-Metalic Manufacturing	63,475.09	2,377.60	1,505.66
	11	Basic Mental and Metal Product	3,881.09	7,482.28	3,911.21
	12	Other Manufacturing	5,803.28	2,496.12	5,020.51
	13	Electricity, Gas and Watr	140,117.51	13,272.15	41,344.69

 

 

 

 

 

 

 

 

 Source: Calucated from CDC data
To trace how the degree of intensity change across over time, the same calucation is repeated across time preiod from 2003 t0 2005. The result show little change in degree of intensity.

A glacce to look at the production and elasticity across industry. The production function can be rewritted using Cobb_Dogulas production function.

Y=F(L,K_d,K_f )=AK_d^α K_f^β L^γε (1)

where

α: prouction elsasticity of domestic capita,

β:production elasticity of foreign capital

γ:prouction elasticity of labor

ε:Represent externality or error term for regression

A: Technology parameter 

   

K_d: domestic capital and 

 

K_f: foreign capital which define FDI in narrow sense.

By using logarithm for both sides the equation (1) became

 LnY=LnA+ αLnK_d+ βLnK_f + γLnL+ ϵ (2)

 I try to run regression to find the production elasticity of each periods to see if the production function in Cambodia across industry follows Homogenous degree one (Constant return to scale when sum of elasticity equal 1) or not?

Year	Capital		Labor		Sum of Elasticity	R-square	Std
2003	0.16	(0.23)	0.43*	(0.17)	0.59	0.58	0.83
2004	0.10	(0.23)	0.50*	(0.17)	0.61	0.63	0.80
2005	0.11	(0.21)	0.56*	(0.17)	0.67	0.68	0.75

*significant at p=5% and the standard error in the bracket.

The sum of elasticity of Capital dose not equal 1 but it shows the tendency of increasing from 2003 to 2004.

The following table let us see the change in elasticity across time 

Year	Cambodia		Foreign		Labor		Sum of Elasticity	R-square	Std
2,003	0.005	[0.318]	0.426	[0.343]	0.240	[0.218]	0.671	0.656	0.791
2,004	-0.030	[0.318]	0.401	[0.364]	0.313	[0.224]	0.684	0.688	0.775
2,005	0.286	[0.393]	0.040	]0.401]	0.465	[0.233]	0.792	0.712	0.749

 

Foreign elasticity is larger than the domestic elasticity of capital. This might be true due to the specific asset or production technology of foreign compare to domestic.

*The above calculation is subject to revised. It is my own calculation and error might be encountered. Comments are welcomed. 

Vienna Convention on law of treaties (1969)

In the national level, the Contract law is promulgated for the purpose to facilitate obligation and right betweent parties. The interpretation on the context is quite important therefore the party binding in the contract must be careful on the meaning of the contract as this content will be subject to intepreation in court if any parties bring action against other. The procedure as well as condition of validity is prescribe in the law of contract of the Kingdom of Cambodia (http://www.cdpcambodia.org/contract.asp). Some special contract is govern by specific law such as marriage and family law, the civil servant contract under the administrative law, or labor contract under the labor law.  

However, on the international level,  Vienna convention on law of treaties 1969 http://untreaty.un.org/ilc/texts/instruments/english/conventions/1_1_1969.pdf governs all rule regarding the procedure, accession, validity and intepretation of treaty between states.  The one which applyies to treaties between state and international organization or between international organization is under the Vienna convention 1986 (http://untreaty.un.org/ilc/texts/instruments/english/conventions/1_2_1986.pdf).

However, the term treaty might be given different nomenclature according to the purpose and degree of binding force. Some names that are used in international relation included, MOU (Memorandum of Understanding), Convention (For multilateral state agreement), Charter (For establishment of international organ such as UN), Pact (For an international agreement on law join by numerious states), Concord (historically used for agreement related to relegion), Exchange of Note (Between minstry of two or more countries) and many other name given in international practice.

Algorithm, Flow-Chart and Programming Language

Alogrithm is a method used to slove particular problem by building up a set of instruction and condition to follow in order to solve the problem. Some methods in Algorithm included Recursive, Iterative method, Array, Pointer, Stack and Tree Diagram. ..  Recursive is a method just similar to the reflection of mirror if you happen to come to a hair salon for a hair cut mirror in front and at the back of you creat image of image (mirro in mirro). This method is quite popular to solve for problem of differential equation or sum of series as repetitive sum is needed to solve the problem or trace the general form solution of the differential equation. Array is a method where data are store in an array accompanied by index for each data. When variable are assigned particular type of value such as integer, real number, boolean, char, string the memory is alread researved for it. Similarly, pointer is quite similar it just like a consecutive pile up of data where we use pointer to refer to each floor of the pile. Unlike array pointer allow for the clear of old value and replace with new value, therefore this method save memory that is why it is quite popular for programmer who write progam with economization consideration. Tree Diagram is just a sub procedure or function (different piece of the whole code of the program) where a link and object oreinted are used to make the part work smoothly togeher.

The basic core of problem-solving lies in building flow-chart. The link here is a flow chart where I make for solving the quadratic equation. http://savuth.files.wordpress.com/2008/05/flowchart.jpg.  Note that not only in the field of computer sciene other field in social science or also used flow chart. It is quite useful tool for problem solving.

Daniel Bedingfield – If you’re not the one (US version)

If you’re not the one then why does my soul feel glad today?
If you’re not the one then why does my hand fit yours this way?
If you are not mine then why does your heart return my call?
If you are not mine would I have the strength to stand at all?

I never know what the future brings
But I know you are here with me now
We’ll make it through
And I hope you are the one I share my life with

I don’t wanna run away but I can’t take it, I don’t understand
If I’m not made for you then why does my heart tell me that I am?
Is there any way that I can stay in your arms?

If I don’t need you then why am I crying on my bed?
If I don’t need you then why does your name resound in my head?
If you’re not for me then why does this distance maim my life?
If you’re not for me then why do I dream of you as my wife?

I don’t know why you’re so far away
But I know that this **much** is true
We’ll make it through
And I hope you are the one I share my life with
And I wish that you could be the one I die with
And I’m praying you’re the one I build my home with
I hope I love you all my life

I don’t wanna run away but I can’t take it, I don’t understand
If I’m not made for you then why does my heart tell me that I am
Is there any way that I can stay in your arms?

‘Cause I miss you, body and soul so strong that it takes my breath away
And I breathe you into my heart and pray for the strength to stand today
‘Cause I love you, whether it’s wrong or right
And though I can’t be with you tonight
You know my heart is by your side

I don’t wanna run away but I can’t take it, I don’t understand
If I’m not made for you then why does my heart tell me that I am
Is there any way that I can stay in your arms?